Does China Have Too Many Luxury Hotels?

China may be facing a case of oversupply in its luxury hotel scene.

“When a new market opens up it is quite normal that you will see a lot of new supply go in,” Clement Kwok, CEO of Hong Kong and Shanghai Hotels tells CNBC. “At the moment many people see great future prospects for China and they are building hotels in China.” Hong Kong and Shanghai Hotels is the owner of the brand Peninsula with a total of nine hotels across the U.S. and Asia. The group has hotels in Beijing, Shanghai and Hong Kong, and is looking toward second-tier cities in China for future development.